Employment Key to Successful Economy

Before the Labour-led government was elected
in November 1999, one of the major problems facing the
regions of New Zealand was a shortage of jobs.

Today, just
over three years later, we have the lowest unemployment in
15 years and employment figures among the best in the OECD.
Many regions are suffering skill shortages.

How did this
significant turn around occur in just three years and to
what extent did the government’s policies contribute to this
favourable situation we are in today?

In 1999 Labour was
elected on a platform of fundamental reform, including one
of Labour’s key ‘credit card’ promises to "Create jobs
through promoting NZ industries and better support for
exporters and small business". Unlike today, unemployment
was high on the political agenda.

Labour took office
with the official unemployment rate at just over 7%. In
three short years unemployment has dropped to a 15 year low
at 4.9%, with over 123,000 new jobs created since Labour
became the government and 12,000 long-term unemployed now in
employment – a reduction of over 30% in a three year period.

More people are in jobs in New Zealand than ever
before.

Registered unemployment has dropped in every
region. In Ashburton, registered unemployment dropped by
over 70% since the Labour led government was elected in
1999. In May 1999 for example, 745 people were registered
unemployed. In May 2002 that figure had fallen to 222. In
the same period long-term unemployed had fallen from 327 to
131, a reduction of over 60%.

Unemployment is no longer
high on the political agenda. Instead the story dominating
the public arena is hundreds of unfilled jobs caused by
significant skill shortages. This is holding our economy
back from performing more strongly than it is.

The
previous government failed to plan for the shortages despite
official advice that the problem was becoming serious.
Labour recognised the problem early, implementing a modern
apprenticeship scheme. There are now 3800 new apprentices
and 68,000 people in industry training and Labour has
promised to double those numbers in the next few
years.

While good export conditions and favourable weather
has contributed to New Zealand’s strong economic
performance, smart innovative government policies have
facilitated job creation and a strong economy despite the
international uncertainty and economic downturn after the
international tragedy on September 11 2001.

In the area of
job creation, Labour has introduced individual job seeker
accounts and making work pay – an initiative targeting sole
parents, long term beneficiaries with dependant children,
low income parents already in the workforce and those
contemplating taking up seasonal work
opportunities.

Regionalisation of the work and income
services of the Ministry of Social Development was
introduced by the government in 2000 to marry its employment
expertise with the different skill needs in each
region.

And, importantly, Labour has begun the crucial
debate on benefit reform, shifting the focus off our welfare
system so that beneficiaries are actively supported to move
off welfare and into paid work.

Unemployment may be the
lowest for a generation, but a group of people remain in
society who have been on a benefit continuously for years,
or don’t last in paid work and end up back on the dole.
National would have blamed them and looked for ways of
removing their benefit. Labour wants to respond more
intelligently, so people see government as a helping hand,
rather than a big stick.

Labour’s plan has five parts:
simplification of the social security system that is easily
understood and easier to deliver, ensuring that moving into
work is worthwhile financially; investing in disadvantaged
regions to help businesses create employment; ensure the
system supports families and children adequately through
difficult times, especially when no family member is in paid
employment; people being prepared to take opportunities
offered to them and be aware of reasonable sanctions if they
do not; and building partnerships with the voluntary sector,
local government and with business communities to find local
solutions to local problems.

Employment is the key to a
successful economy and this Labour government has, and will
continue to tackle the difficult issues surrounding the
barriers to employment, creating jobs, and filling skill
shortages.

I want to hear what you think. Please contact
me if you have any questions or ideas on how to keep
unemployment at this record low and the economy growing
strongly.

“The BPS and the Treasury’s Half Year Economic and Fiscal Update show we can deliver our promises while running sustainable surpluses and paying down debt...

“Today we are announcing the full details of the Government’s Families Package. This is paid for by rejecting National’s tax cuts and instead targeting spending at those who need it most. It will lift 88,000 children out of poverty by 2021." More>>

The spending lavished on Defence projects to meet the risks that could maybe, possibly, theoretically face New Zealand in future is breath-taking, given how successive governments have been reluctant to spend even a fraction of those amounts on the nation’s actual social needs. More>>

Today the Minister of Education announced that the Government has stopped the controversial National Standards system of assessment and declared them an arbitrary measure which did not raise children's achievement as the previous Government intended. More>>

The People’s Commission on Public Broadcasting and Media, was crowdfunded and was informed by an extensive consultation, seeking the views of both those working in Media as well as gathering input both online and in person from ordinary Citizens. More>>

ALSO:

Prime Minister Jacinda Adern was joined by Minister of Finance Grant Robertson and Minister for Children Tracey Martin to announce the appointment of Adrian Orr as the new Governor of the Reserve Bank and the name change of the Ministry for Vulnerable Children to ‘Oranga Tamariki - Ministry for Children’. More>>

‘Today, we learned the new government has added New Zealand’s name to a proposal designed to lead to foreign investment rules in the WTO at this week’s ministerial meeting in Argentina,’ said Auckland University Professor Jane Kelsey. More>>